Blockchain In Construction: What You Need to Know
What is blockchain?
Blockchain is this same as a ledger, but DE-centralized. This means that it is not kept in one location, or owned by one entity. The blockchain is visible to everyone who is participating in a transaction, whether that be financial or a data exchange.
Blockchain has this name because, at scheduled intervals, information on transactions is recorded and added to the chain as a block. This ‘blockchain’ is a continuously growing necklace of information records, giving us historical transaction transparency and chronological fulfilment.
So, how would this help construction?
It would help in two primary ways.
- It would save money by removing most of the intermediaries involved in contract processing and payment (without them, we save time and money as there will be fewer administrative contract documents and fewer fees).
- It would streamline project delivery and payment.
You get paid for what you do, when you do it, with no paperwork and no finance team needed for processing. This means less paper, fewer people involved, and complete visibility of responsibility and budget – you only pay for what’s done.